160512: NSE ASI retraces by +0.46% as sentiment turns positive

Category: Daily & Weekly Market Updates

Read (1625)

160512: NSE ASI retraces by +0.46% as sentiment turns positive

Equity Market retracted to close in the positive territory after two sessions of negative outlook as the bulls re-surfaced in style on the bourse while the +2.46% gains recorded in the share price of Dangote Cement Plc, market leader by capitalization, contributed to the lifting of the key market indicator to the green zone amid negative market breadth.

Nevertheless, the key benchmark indices closed optimistic as sentiments turned positive, taking supports majorly from Large CAP stocks which was particularly driven by DANGCEM

In the same vein, the market capitalization of 187 first-tier equities appreciated by N32.60 billion as market sentiments turned green. 99 equities were traded today as against previous 107 with more activities recorded in Financial Services, Consumer Goods, Oil & Gas, Healthcare, Industrial Goods, Conglomerates, Agriculture, Services and ICT sectors.

Today, two out of the five NSE sectoral indices closed positive as NSE 30 which basically measures the performance of blue chips retraced by +0.17%, NSE Insurance retraced by -0.71% while NSE Oil & Gas closed flat with NSE banking recording the lowest loss with -0.19% while NSE Food recorded +0.07% gain.

At the close of trading session, the NSE All-Share Index inches up by +0.46% to close at 22,524.67 as against a decline by -0.58% recorded in the previous session to close at 22,422.43. In the same vein, market capitalization appreciated by N32.60 billion (US$217.28 million) to close at N7.18 trillion (US$47.87billion) as against depreciation by N41.46 billion (US$276.35 million) recorded in preceding session to close at N7.15 trillion (US$47.65billion).

The number of gainers at the close of trading session closed lower at 17 as against 18 recorded in the previous session while decliners closed higher at twenty-four (24) as against twenty (20) losers recorded in the previous trading day – suggesting a negative market breadth.

Today, the following companies presented their results

1. Portland Paints & products Plc: in its Q1 2012 result recorded positive turnover growth of 45.3% and positive PAT growth of +41.3%.

2. MAY & BAKER Plc: in its Q1 2012 result negative turnover growth of -3.5% and negative PAT growth of -249%.

As usual, Financial Services sector led the market transaction volume today with 186.50 million units valued at N1.68 billion (US$11.23 million) exchanged in 2,335 deals as against 302.08 million units valued at N2.76 billion (US$18.41 million) exchanged in 2,535 deals recorded in previous session.

The volume recorded in the sector was driven by transaction in the shares of GUARANTY, ACCESS, FIRSTBANK, UBA and DIAMONDBNK Plc and the total volume of 138.99 million units valued at N1.38 billion traded in five stocks accounted for 53.40% of the entire market volume and their value represented 57.36% of the market’s value.

Transaction volume on the exchange moved down by -42.06% to close at 260.26 million units exchanged in 4,325 deals as against an upbeat by +53.36% recorded in the previous trading to close at 449.21 million units exchanged in 4,426 deals.

Also, market value depreciated by -41.36% to close at N2.42 billion (US$16.14 million) as against appreciation by +75.43% recorded in the previous trading session to close at N4.13 billion (US$27.53 million).

Sectoral Performance (According to New Market Segmentation)

Financial Services sector led the market sectoral performance with 186.50 million units of shares traded in 2,335 trades within the sector, followed by Consumer Goods sector to come second on the chart with 47.12 million units traded in 1143 trades while Oil & Gas sector recorded 15.34 million units in 287 trades to close with third position on the chart. See the full table below

Market Outlook by Classification

At the end of today's session, it was observed that Medium Cap stocks according to new market segmentation topped today's market activity with 48.89% contribution to market turnover, followed by Large Cap stocks with 35.08% while Small Cap stocks stake 16.03% to come last on the chart.

Among the Large cap stocks, DANGCEM, NB and GUARANTY Plc topped the 7 traded stocks in that class while WAPCO, UBA and ACCESS dominated Medium Cap of 23 traded stocks. Similarly, UNITYBNK, GLAXOSMITH and HONYFLOUR led 69 traded stocks in the Small Cap category in that order. See table below

SECTORAL REVIEW

The Agriculture sector closed with one gainer to one loser as against one gainer recorded in the previous session. Presco Plc closed with +4.99% gains after today’s trading session.

The Conglomerates sector closed with one gainer to one loser as against one gainer recorded in the previous session. Transcorp Plc closed with +4.69% gains after today’s trading session.

The Construction/Real Estate sector closed with one gainer as against one gainer recorded in the previous session.

The Consumer Goods sector closed with three gainers to five losers as against five gainers to one loser recorded in previous session. Dangote Flour Mills Plc moved northwards by +4.98% after today’s trading session.

The Financial Services sector closed with five gainers to twelve losers as against five gainers to eleven losers recorded in the previous session. Fidelity Bank Plc moved up by +4.72% while FCMB Plc moved down by -5.00% loss after today’s trading session.

The Healthcare sector closed with two losers compared to one gainer to two losers recorded in previous session.

The ICT sector closed with no price movement as against one loser recorded in the previous session.

The Industrial Goods sector closed with three gainers to two losers as against four gainers to one loser recorded in previous session.

The Natural Resources sector closed with no price movement as against any price movement recorded in previous session. All stocks in the sector closed flat after today’s trading session.

The Oil & Gas sector closed with one gainer to one loser as against one loser to eight unchanged prices recorded in previous session.

The Services sector closed with one gainer to one loser as against three losers to nine unchanged prices recorded in the previous session.

Further analysis on Acquiring Banks since transaction date showed that the share price of Access Bank Plc has recorded 36.97% gain, followed by FCMB with 21.31% while Union Bank Plc leads the chart with 105.74% gain. However, Sterling Bank recorded -5.51% loss while ETI also closed negative with -2.31% loss recorded. See the tracking table below.

Acquiring Banks